EMERGING TECH
EMERGING TECH
EMERGING TECH
UK launches task force to consider benefits and risks of cryptocurrencies
The U.K. government has turned its attention to cryptocurrencies in a process that seems likely to put pressure on the fledgling market.
The cryptocurrency task force, announced by U.K. Finance Minister Philip Hammond Thursday, is said to have been established to help the country to manage the risks around cryptoassets as well as harnessing the potential benefits of the underlying technology, a reference to blockchain platforms.
“I am committed to helping the sector grow and flourish, and our ambitious sector strategy sets out how we will ensure the U.K. remains at the cutting edge of the digital revolution,” Hammond said in a statement. “As part of that, a new task force will help the U.K. to manage the risks around crypto assets, as well as harnessing the potential benefits of the underlying technology.”
The task force includes representatives from the Bank of England, the country’s central bank, and the Financial Conduct Authority, both of which have spoken out against cryptocurrencies in the past. As Bitcoinist noted, Bank of England Governor Mark Carney is on record as saying that cryptocurrencies are are failing and that they are poor stores of value. “Over the past 5 years, the daily standard deviation of Bitcoin was 10x that of sterling […] This extreme volatility reflects that the cryptocurrencies have neither intrinsic value nor external backing.”
Andrew Bailey, chief executive of the Financial Conduct Authority, said in December that bitcoin investors should be prepared to lose their money because cryptocurrencies are not regulated. Another report quoted Bailey saying that bitcoin was “not a real currency” and that investing in cryptocurrencies was akin to gambling.
Essentially two regulatory bodies with a history of being critical of or even opposed to cryptocurrencies are key members of a task force that will consider cryptocurrencies going forward. You don’t have to be Sherlock Holmes to figure that the findings of the task force won’t be positive for the crypto business.
Image: Wikimedia Commons
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